IASB issues exposure draft on classification of liabilities

11 March 2015

The International Accounting Standards Board (IASB) has published for public comment the Exposure Draft Classification of Liabilities (Proposed amendments to IAS 1), which clarifies how entities classify debt, particularly when it is coming up for renewal.

The proposed amendments are designed to improve presentation in financial statements by clarifying the criteria for the classification of a liability as either current or non-current. The proposed amendments do this by:

  1. Clarifying that the classification of a liability as either current or non-current is based on the entity's rights at the end of the reporting period.
  2. Making clear the link between the settlement of the liability and the outflow of resources from the entity.

The proposals are open for public comment for 120 days. Comments on the proposed amendments should be sent to the IASB by 10 June 2015.

The exposure draft can be accessed via the IFRS website


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